Question 1

The chart of accounts classify the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?

Accepted Answer

A)   1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Expenses, 5-Revenues
B)   1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Revenues, 5-Expenses
C)   1-Assets, 2-Owner's Equity, 3-Revenues, 4-Expenses, 5-Drawing
D)   1-Owner's Equity, 2-Drawing, 3-Revenues, 4-ExpensesE) All of the above
F) A) and D)

Question 2

A transaction that is recorded in the journal is called a journal entry.

Accepted Answer

A) True 
 B)False

Question 3

The accounts payable account is listed in the chart of accounts as an asset.

Accepted Answer

A) True 
 B)False

Question 4

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Accepted Answer

A) True 
 B)False

Question 5

The chart of account for the Corning Company includes some of the following accounts:  On the journal page 3, the following transaction was found:
 What is the post reference that will be found on the journal entry?

Accepted Answer

A)   15, 11
B)   15
C)   11
D)   3E) C) and D)
F) All of the above

Question 6

An account is said to have a debit balance if

Accepted Answer

A)   the amount of the debits exceeds the amount of the credits
B)   there are more entries on the debit side than on the credit side
C)   there are more entries on the credit side than on the debit side
D)   the first entry of the accounting period was posted on the debit sideE) All of the above
F) B) and C)

Question 7

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

Accepted Answer

A) True 
 B)False

Question 8

A list of the accounts is called

Accepted Answer

A)   ledger
B)   chart of accounts
C)   T-Account
D)   DebitE) B) and D)
F) None of the above

Question 9

Which of the following entries records the receipt of cash from patients on account?

Accepted Answer

A)   Accounts Payable, debit; Fees Earned, credit
B)   Accounts Receivable, debit; Fees Earned, credit
C)   Accounts Receivable, debit; Cash, credit
D)   Cash, debit; Accounts Receivable, creditE) B) and C)
F) C) and D)

Question 10

A debit may signify a(n)

Accepted Answer

A)   decrease in asset accounts
B)   decrease in liability accounts
C)   increase in the capital account
D)   decrease in the drawing accountE) None of the above
F) All of the above

Question 11

The classification and normal balance of the drawing account is

Accepted Answer

A)   an expense with a credit balance
B)   an expense with a debit balance
C)   a liability with a credit balance
D)   owner's equity with a debit balanceE) B) and D)
F) All of the above

Question 12

On January 1, 2010, Cary Parsons established a catering service. Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions that occurred during the first month of operations. You are to indicate for each transaction the accounts that should be debited and credited by placing the account number(s) in the appropriate box.

Accepted Answer

The answer of On January 1, 2010, Cary Parsons established...

Question 13

Which side of the account increases a cash account?

Accepted Answer

A)   credit
B)   neither a debit or a credit
C)   debit
D)   either a debit or a creditE) B) and C)
F) C) and D)

Question 14

The gross increases in owner's equity attributable to business activities are called

Accepted Answer

A)   assets
B)   liabilities
C)   revenues
D)   expensesE) A) and B)
F) A) and C)

Question 15

The increase side of all accounts is the normal balance.

Accepted Answer

A) True 
 B)False

Question 16

The chart of account for the Miguel Company includes some of the following accounts:  On the journal page 3, the following transaction was found:
 What is the post reference that will be found on the journal entry?

Accepted Answer

A)   41
B)   3
C)   11, 41
D)   11E) A) and D)
F) A) and C)

Question 17

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

Accepted Answer

The answer of Record the following selected transactions for April...

Question 18

What effects does this journal entry have on the accounts?

Accepted Answer

A)   Increase Cash and increase Land
B)   Increase Land and decrease Cash
C)   Decrease Cash and decrease Land
D)   Increase Cash and decrease LandE) B) and C)
F) None of the above

Question 19

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

Accepted Answer

A) True 
 B)False

Question 20

A debit balance in which of the following accounts would indicate a likely error?

Accepted Answer

A)   Salaries Expense
B)   Notes Payable
C)   Edgar Martin, Drawing
D)   SuppliesE) B) and C)
F) B) and D)

Exam 2: Analyzing Transactions

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Correct Answer
verified

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

Correct Answer
verified

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

Correct Answer
verified

The gross increases in owner's equity attributable to business activities are called

Correct Answer
verified

The chart of account for the Miguel Company includes some of the following accounts: On the journal page 3, the following transaction was found: What is the post reference that will be found on the journal entry?

Correct Answer
verified

An account is said to have a debit balance if

Correct Answer
verified

The accounts payable account is listed in the chart of accounts as an asset.

Correct Answer
verified

A transaction that is recorded in the journal is called a journal entry.

Correct Answer
verified

A list of the accounts is called

Correct Answer
verified

A debit balance in which of the following accounts would indicate a likely error?

Correct Answer
verified

The increase side of all accounts is the normal balance.

Correct Answer
verified

The classification and normal balance of the drawing account is

Correct Answer
verified

Which of the following entries records the receipt of cash from patients on account?

Correct Answer
verified

Correct Answer
verified

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

Correct Answer
verified

A debit may signify a(n)

Correct Answer
verified

Which side of the account increases a cash account?

Correct Answer
verified

What effects does this journal entry have on the accounts?

Correct Answer
verified

The chart of accounts classify the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?

Correct Answer
verified

The chart of account for the Corning Company includes some of the following accounts: On the journal page 3, the following transaction was found: What is the post reference that will be found on the journal entry?

Correct Answer
verified

Exam 2: Analyzing Transactions

Posting a part of a transaction to the wrong account will cause the trial balance totals to be unequal.

Correct AnswerverifiedShow Answer

Record the following selected transactions for April in a two-column journal, identifying each entry by letter:

Correct AnswerverifiedShow Answer

A proof of the equality of debits and credits in the ledger at the end of an accounting period is called a balance sheet.

Correct AnswerverifiedShow Answer

The gross increases in owner's equity attributable to business activities are called

Correct AnswerverifiedShow Answer

The chart of account for the Miguel Company includes some of the following accounts: On the journal page 3, the following transaction was found: What is the post reference that will be found on the journal entry?

Correct AnswerverifiedShow Answer

An account is said to have a debit balance if

Correct AnswerverifiedShow Answer

The accounts payable account is listed in the chart of accounts as an asset.

Correct AnswerverifiedShow Answer

A transaction that is recorded in the journal is called a journal entry.

Correct AnswerverifiedShow Answer

A list of the accounts is called

Correct AnswerverifiedShow Answer

A debit balance in which of the following accounts would indicate a likely error?

Correct AnswerverifiedShow Answer

The increase side of all accounts is the normal balance.

Correct AnswerverifiedShow Answer

The classification and normal balance of the drawing account is

Correct AnswerverifiedShow Answer

Which of the following entries records the receipt of cash from patients on account?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Journalizing transactions using the double-entry bookkeeping system will eliminate fraud.

Correct AnswerverifiedShow Answer

A debit may signify a(n)

Correct AnswerverifiedShow Answer

Which side of the account increases a cash account?

Correct AnswerverifiedShow Answer

What effects does this journal entry have on the accounts?

Correct AnswerverifiedShow Answer

The chart of accounts classify the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?

Correct AnswerverifiedShow Answer

The chart of account for the Corning Company includes some of the following accounts: On the journal page 3, the following transaction was found: What is the post reference that will be found on the journal entry?

Correct AnswerverifiedShow Answer

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